The Dean of the Business School at a Small Florida $$E ( y ) = \beta _ { 0 } + \beta _ { 1 } x .$$

question 19

Multiple Choice

The dean of the Business School at a small Florida college wishes to determine whether the grade -point average (GPA) of a graduating student can be used to predict the graduate's starting salary. More specifically, the dean wants to know whether higher GPAs lead to higher starting salaries. Records for 23 of last year's Business School graduates are selected at random, and data on GPA (x) and starting salary (y, in $thousands) for each graduate were used to fit the model $$E ( y ) = \beta _ { 0 } + \beta _ { 1 } x .$$ . The value of the test statistic for testing ?1 is 17.169. Select the proper conclusion.

• A) There is sufficient evidence (at ? = .05) to conclude that GPA is positively linearly related to starting salary.
• B) There is insufficient evidence (at ? = .05) to conclude that GPA is positively linearly related to starting salary.
• C) There is insufficient evidence (at ? = .10) to conclude that GPA is a useful linear predictor of starting salary.
• D) At any reasonable ?, there is no relationship between GPA and starting salary.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, considering the time value of money.

Hiring Capital

The resources, often financial, that an organization allocates to the process of recruiting and acquiring new employees or talent.

Future Profits

Expected gain in financial terms that a business anticipates receiving over a forthcoming period, based on current strategies, market conditions, and operations.

Hiring Labor

The process of finding, evaluating, and employing individuals to work for a business or organization.